Independent Contractors Agreement: What to Know
If you are thinking about hiring a business or a professional individual to complete a certain task that is going on for a short term period, then you may want to have the Independent Contractors Agreement ready. The agreement will be beneficial for both parties because it will protect both parties and prevent the possibility of problems to them both. That’s why there are certain elements that you need to include in the agreement – making sure that it covers the crucial factors in the true manner.
About the Agreement
The Independent Contractors Agreement is the legal contract between the two involved parties for a certain project or service. It is usually done when one person (or a company) is hiring another person (or company) to help for a certain project lasting for a short term period. This agreement is different from the employment agreement because it specifies clearly why the party is hired – and not for the employee tax or legal purpose. After all, the employment agreement is used when the hiring company is hiring the contractor for a long period of time instead of a shorter time.
There are some crucial elements in the agreement:
- The hiring company. It can be a company or a person in need of the special help or service
- It is the person or company that is hired for the task or project
- The specific and detailed task description that needs to be done. It can also means the work product that needs to be delivered
- How much the contractor will be paid and how often
- Effective date. It specifies the details when the agreement begins as well as the start of the job
- It refers to whether the hiring individual can end the professional relationship at will (or at any time) and about how many days the written notice should be needed
- Fringe benefits. It refers to the contractor’s side that it can’t take part in the unemployment benefits or the hiring company’s sick pay, vacation pay, health, or pension
- The contractor is allowed to hire their own helpers or assistants. However, they are responsible for their own assistants’ expenses such as Medicare or Social Security or taxes
Getting the Sample
Dealing with your own agreement and composition can be overwhelming and confusing. If you want to see some samples and examples of the Independent Contractors Agreement, you can always check our collections and library.